Purchase Agreement Financial Glossary

What is it? Same or similar to contract to purchase. See also contract to purchase under mortgage.

Finance Term Definition Added By: Madison

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Financial Term delay days is Lag times. The amount of time before the owner of a MBS receives payments from the underlying mortgages. The time between when the underlying mortgagors make their payments to the servicers and when those payments are due to the MBS investors. Delay days may refer to either stated delay or actual delay days. Stated delay days is the number of days from the issuance of an MBS pool or from the beginning of the interest accrual period until the first payment remitted to the investors who own the right to receive the cash flow. For example, a GNMA MBS pool with a stated delay of 45 days would pay interest accrued in January to security holders on February 15. Actual delay days is the monthly lag, measured in days, between the date the payments are due from a mortgage loan borrower and the date that the pro rata share of those payments is remitted to the MBS investors who own the right to receive the cash flow. Thus, since the January payment is not due until February 1, GNMA holders who receive Januarys payment on February 15 have 14 actual delay days.